Creativity and Innovation as necessity

Creativity and innovation are two related but separate notions, and each is required for workplace success.

“Creativity” and “innovation” are two words that are constantly thrown around in brainstorming sessions, corporate meetings, and company mission statements. There’s no question that these values are highly prized in the fast-paced modern workplace, but do leaders who use the terms truly know the difference between them?

What is creativity?

Creativity is the spontaneous development of new ideas and out-of-the-box thinking. Creativity is a necessary prerequisite for innovation, but they are not the same thing.

Generating creativity means allowing people to think outside the box and go against the norm sometimes.

The key factor is that creativity remains a great idea alone, not reality yet.

Types of creativity

Arne Dietrich, Associate Professor of Psychology and Chair of the Department of Social and Behavioral Sciences at the American University of Beirut, Lebanon, conducted research into creativity that segments it into four types: deliberate and emotional, deliberate, and cognitive, spontaneous, and emotional and spontaneous and cognitive.

People can experience each of the four types of creativity. Especially true for knowledge workers like researchers, lawyers, or doctors, deliberate and cognitive creativity may manifest while on the job, but spontaneous and emotional creativity may show itself during an artistic pursuit.

What is innovation?

“Innovation is the implementation or creation of something new that has realized value to others.” Innovation is realized most vividly in the form of a tool, physical benefit, or aid that solves a problem or creates an advantage.

Types of innovation

Doblin, a global innovation firm that helps leading organizations find human-centered solutions to business problems, created the Ten Types of Innovation Framework as a way to identify transformational opportunities, specifically in business. Based on research of over 2000 successful innovations, Doblin outlined three broad categories: business model, product, and marketing.

Business model:?these innovations analyze how an organization operates and creates revenue. These can be higher risk as they sometimes change fundamental decisions on which businesses are built. Business model innovations are best when owners and operators identify oversaturated markets, low customer satisfaction or outdated technology.

Product: product innovations make existing material goods better or are the creation of an entirely new product. It’s the most common form of innovation; famous examples include smartphones, wireless headphones, or foot-massaging insoles.

Marketing: Marketing innovation creates new markets or increases existing market share. Marketing innovations are new ways for brands to talk to and engage with their consumers.

What’s the difference between creativity and innovation?

Creativity and innovation, while closely linked as part of a creation process, are not the same. Creativity isn’t measurable, it’s subjective, while innovation – at its most basic level meaning “new” – is measurable in the sense that an innovation is the creation of something new, whether it be a new product, idea, or method.

Why are innovation and creativity important?

Once an idea is possible, innovation tends to be an easier challenge for more players to achieve.

Creativity is the novel step of being the first to identify that something might be possible in the first place.

But innovation is the action of putting things into practical reality, despite challenges and resistance, rather than just contemplating.

Both are necessary in business, but only one of them translates to real revenue and profits.

Business leaders frequently interchange creativity and innovation without understanding what separates the two.

Creativity isn’t necessarily innovation. If you have a brainstorm meeting and dream up dozens of new ideas, then you have displayed creativity, but there is no innovation until something gets implemented.

Innovations can be simple small changes to existing processes, products, or interactions.

In other words, innovation is a process that replicable and scalable; a creative individual is not.

The importance of creativity and innovation in busines?

Creativity and innovation contribute to a business’s growth and overall success by filling unique needs in markets, differentiating businesses from competitors and evolving a brand as consumer wants and needs evolve. Creativity and innovation keep an organization dynamic.

How do you develop creativity and innovation?

Sometimes the best way to spark innovation is by allowing activity within the organization that deviates from the norm but that may lead to positive outcomes.

Part of the issue is getting people to imagine and develop new visions of what could be. Creativity is often associated with art and culture, but it’s not required to be Leonardo da Vinci; what matters is that a person is willing to imagine new possibilities outside of norms.

The birth of Starbucks’ now-popular Frappuccino drink is an example of how leaders giving their employees some room for deviation allows creativity to blossom into innovation.

In the early 1990s, the staff at a Santa Monica, California Starbucks invented a new drink and asked an executive to propose the product to headquarters, where it was ultimately rejected. Later, the same store invented another drink (the Frappuccino), and the executive asked the staff to quietly make and sell the drink to local customers. It quickly became a hit, and the management group implemented the successful idea company-wide once its value was proven.

The Frappuccino turned out to be one of Starbucks’ most popular and profitable drinks.?And, according to Starbucks’ then-vice president of sales and operations Howard Behar, it happened because someone was allowed, and even encouraged, to experiment with a new product that deviated from the company’s core product line.

Leonardo da Vinci and Thomas Alva Edison

“Shun those studies in which the work that results dies with the worker.” - Leonardo da Vinci, The Notebooks, 1508 - 1518

“Genius is one percent inspiration and ninety-nine percent perspiration.”- Thomas Alva Edison, Life, 1932.

Paradoxically, if we do not fail to succeed, we will fail to succeed. The best leaders understand this. Increasingly they are shaping cultures that not only tolerate failure but invite failure as indispensable to personal and organizational development.

Leonardo da Vinci was one of the greatest painters of the Italian Renaissance, yet he left only a handful of completed paintings. He had a keen eye and a penetrating mind that led him to make important discoveries in medicine, mechanical engineering, civil engineering, and aeronautics, yet he never published his ideas. His notebooks are now famous for their prophecy and precision, in which he sketched the modern helicopter, great details of human anatomy, the basics of water turbines, and numerous other original discoveries and inventions. He was a curious and creative soul, yet very little of his work was used in his day.

Thomas Edison was also a very curious and creative soul. Yet many of the discoveries and inventions he pursued and documented were patented and applied in his time (and many of them still exist today). The stock ticker, telegraph systems, wax paper, the phonograph, the incandescent light bulb, the fluoroscope, nickel-iron-alkaline batteries, a motion picture camera, and vulcanized rubber were just a few of the creative ideas he turned into commercial successes. All of these inventions were born and nurtured in his Menlo Park, N.J. “invention factory,” a place where he and nearly sixty colleagues worked to conceive, extend, improve upon, and tinker with myriad electric mechanisms and electronics. Edison was the first systematic innovator.

Da Vinci and Edison help us understand the important distinction between creativity and innovation. And the role of failure in successful endeavors. Simply put, creativity is the ability to think of new ideas.?Innovation, combines the thinking that is at the heart of creativity with the doing that is needed to put flesh on ideas. Innovation is the process of testing those ideas, refining them, and bringing them into a state of usefulness in the physical world.

When it comes to innovation, failure can be a lot more instructive than success.

We’re always celebrate the market leaders who have changed the world with great products and services. At the same time, it’s important not to forget the noteworthy product flops out there, because you can learn a lot from them.

Why study innovation failure?

The fact is, for every innovation leader out there like Google, Microsoft, or Amazon, there are hundreds of competitors that never quite make it out of the gate. For growing startups looking to establish themselves, it’s always helpful to try and understand why this happens.

And innovation failure isn’t something that only happens to small companies, either: even market leaders like Coca-Cola, Samsung, and Nintendo can still have plenty of bad days.

That’s why it’s so important to study the examples of where other companies have got things wrong. If you can understand where they went sideways, you’ll have a better chance of avoiding the same fate with your next great product.

Let’s get started with one of the strangest examples of innovation failure:

The DeLorean DMC-12

Of all the innovation failures in this list, the DeLorean DMC-12 is undoubtedly the coolest.

Despite looking swish, the DMC-12 never really found a home with car enthusiasts. Slow sales, combined with a costly manufacturing process due to the car’s complicated design, all combined to push DeLorean to bankruptcy.

The DeLorean DMC-12 fiasco wasn’t just a question of costly manufacturing, either. It’s also a great example of how a patchy approach to marketing can sink an otherwise iconic product.

The Ford Edsel

Even Bill Gates looks to the example of the Edsel as a reminder of how innovation can go so wrong - even for market leaders.

Ford developed the Edsel in a way that was inconsistent and costly. Rather than being guided by research, reports suggest the company gave product development executives too much latitude with the Edsel and rushed development without getting the basics right first.

Not only was the Edsel a massive flop - it was an expensive flop, costing Ford hundreds of millions in product development. As this example shows, even a company that has given the world so many great products can still get things wrong in a big way.

The Tata Nano

Designed specifically to appeal to the local Indian market, the Tata Nano was marketed as an affordable, no-frills product, and retailed for an amazingly cheap $2,500 US.

Unfortunately, the extremely low price of this product was only made possible by cutting corners in the manufacturing process. This made the Nano dangerous to drive, with reports of some models spontaneously bursting into flames.

Alongside the Pinto, the Tata Nano is a great example of why some products are just too important to take shortcuts during the manufacturing process.

Google Glass

This is one we could easily include under the ‘consumer electronics’ category, but really Google Glass goes beyond simple consumer electronics.

Despite having some potentially cutting-edge features like hands-free web navigation and live map imaging, Google Glass simply never took off.

This is one of the best examples of products being doomed to failure by their high price. Even the most hard-core tech fans were hesitant to shell out $1,500 US for a gadget, meaning Google Glass never had much of a chance of getting out of the gate.

George Mitchell and Barnett Shale

Two key tenets of technological innovation are the ability to “stand on the shoulders of giants,”, and experimentation.

George Mitchell, the founder of Mitchell Energy, was known for both. The professors write, “Key factors that seemed to distinguish Mitchell from other operators in the region were his ability to keep ahead of developments in science associated with drilling and fracking and his willingness to try new techniques that had not yet been proven in large-scale operations.”

?“Keys to innovation: Learning from others and experimenting.”

Mitchell clearly wanted to create a climate of creativity and innovation and set about designing a culture that would recognize and nurture independent thinkers. Mitchell was dogged in his pursuit of new ways to address the coming gas shortage and constantly challenged leaders within the company to pursue all leads and ideas that were worthwhile.

Indeed, it was an underling who finally figured out how to crack the Barnett Shale. But even at Mitchell Energy, it was an uphill battle. Having invented a new formula for fracking fluid, Nick Steinsberger was told by his peers at the company that his experiment would fail. The potential solution was the subject of much derision in the company. One executive said, “The idea was crazy at the time. He had guts; no one else would have even thought of doing it.”

Saying Mitchell’s “dogged” innovativeness paid off is actually a dramatic understatement: the Barnett Shale play, which many were ready to give up on, could yield 45 trillion cubic feet of natural gas. Shale gas and tight oil plays – possible only because of the fracking technology that Mitchell proved viable – will account for two-thirds of all U.S. natural gas production by 2040, according to the U.S. Energy Information Administration.

The story of Mitchell Energy is a story of how one company found tremendous commercial success – and launched a revolution that shifted the balance of global power – by defying convention. Its lessons are useful for new disruptors in energy. And perhaps, these and other lessons from past disruptions and revolutions in the energy industry will be key to the future of the “new” energy economy.

Why innovation is critical and not optional?

“Innovate or die” has become a clarion call for corporations large and small, regardless of industry. Whether creating new products, new internal processes, or entirely new ways of doing business, companies must consistently innovate to survive in today’s business climate. For companies within the oil and gas industry specifically, this couldn’t be truer.

According to Stuart Spence, CFO of McDermott International, Inc., as the overall business structure changes, it’s crucial to stay ahead of the curve.

The success of any company can be directly linked to the people and the culture you create in the work environment. It is crucial to coach and guide people without telling them the answers. It promotes creativity, ingenuity and is empowering. As managers, you should see the bigger picture and its associated impacts. That helps you to shape the direction for the company. Sometimes we can stick down in the work and forget to peek above the clouds to check our heading and direction.

Oil and gas companies must evolve (develop, grow) and cannot rely on past practices and approaches to secure future business. We are in a new environment of “lower for longer” with respect to oil prices and need to maximize our efficiencies. You can work on it to achieve this through successful cost savings initiatives and refined operating system.

You should have solid people across-the-board who care about providing the best total solutions for your clients. Your focus on improving safety and operational performance would allow you to remain profitable and to maintain your strong backlog. A big advantage for your company will be your strong safety culture which call “Taking the Lead,” where being safe is simply a part of your DNA.

Managers of oil & gas companies should be the champions of on-schedule, cost, and project execution and serve as the advocate for the Company's way of doing business. You should clearly define your operating model to drive consistency in your systems, processes, execution, and culture across the globe. It should become a global roadmap for your workforce and part of your job to ensure to follow those internally established processes. This consistency across the globe will establish stronger financial discipline. Focus on cost and project execution the right way, the first time.

Being an oil & gas company, you should gradually evolve into a truly vertically integrated company that can perform the full slate of engineering, procurement, construction, and installation services.?What that means is your knowledge and experience must help you with the engineering and vice versa. You should know how to drive down costs on a design using our past experience.

As managers, you should recognize that you must be innovative, especially in the “lower for longer” environment that you are currently experiencing. You should realize that, as managers, you are responsible for finance and IT function, where you should work to digitize and further create efficiencies.

Innovation should become a part of your Company culture. You can implement new software platforms that would improve efficiency and productivity through digitization and standardization. This software may produce a 3D digital twin to mirror the as-built physical state of a facility helping you to better manage operations and maintenance. You should realize, you may never see $80 to $100 per barrel oil again, so now more than ever, innovation is needed to improve efficiencies. Across the entire industry, costs have been reduced by approximately 25 percent since 2014. All companies are faced with the same situation – either innovate or eventually go out of business.

As managers, you must constantly look for better ways to design, fabricate and install platforms, pipelines, or subsea systems.

For example, McDermott recently acquired and executed a sale and leaseback of the Amazon vessel to better position themselves for the high-tension ultra-deepwater markets when they return. This resourceful financing solution created flexibility on McDermott balance sheet while also providing McDermott with a new asset that they feel will enable them to compete in the ultra-deepwater markets once they return.

One of your keys focuses and priorities must be customer relationships. Strong relationships are the foundation of your success and lead to the best total solutions. You should build strong relationships with several national oil companies, and you should also have good relationships and proven track records with a number of independent oil companies.?

Most recently, some of the super majors began to reinvest, which provides more opportunities. They continue to focus on national oil companies, while also build relationships with more independents and super majors, positioning themselves for the expected returning markets in the upturn.

Build your strong relationships with a new technology focus. Work to achieve earlier involvement with your customers through increased pre-FEED and FEED work, which will remove some cost and execution risk and hopefully will lead to pull-through awards. As in any industry, technology is extremely important.

Leading Creativity and Innovation

Emerging oil & gas industry trends are making the industry more efficient, safer, and smarter. To this end, companies explore ways to digitize, automate, and solve complex sub-surface engineering challenges efficiently and competitively.

For example, Artificial intelligence (AI) algorithms provide a competitive edge as well as enable oil & gas companies to increase oilfield or well productivity. Further, the gradual adoption of advanced robotics and data management practices accelerates processing times and reduces the need for human labor.

Big data analytics, cloud technology, predictive maintenance, and manufacturing execution systems enable vital data management and analysis tools that significantly improve overall operational efficiency.

Further, AI enables robotic applications in oil rigs and refine oil well imaging processes. O&G startups also develop blockchain solutions that offer visibility and transparency across the entire oil & gas value chain. Finally, augmented, and virtual reality technologies improve worker safety and enable remote operations and virtual training.

Internet of Things (IoT)

The oil & gas industry utilizes the IoT to improve production, optimize equipment, ensure worker safety, and monitor remote areas. Sensors placed inside wells, blowout preventers (BOP), and choke valves enable real-time data collection. Using this data, O&G Companies identify faulty equipment quickly, helping field engineers predict and react quickly. IoT solutions allow oil & gas facilities to minimize maintenance costs and gain detailed visibility into their equipment or processes.

Artificial Intelligence

AI and data science solves complex problems in upstream, midstream, and downstream operations. AI-enabled platforms support decision-making with insights from predictive, prescriptive, and cognitive analytics. AI helps petroleum engineers and oil & gas industry managers discover and implement new exploration & production ideas on the field to increase ROI.

Big Data & Analytics

Big data platforms help the industry’s data analysts draw insights from production and performance data. This is also useful for engineers looking to optimize production and ensure the safety of reservoirs. By using big data analytics, the oil & gas industry reduces operational costs and the industry’s carbon emissions.

Robotics & Automation

To address the risk to human safety the oil industry is adapting to robotics & automation solutions to increase workplace safety as well as the speed of operations. Robots are also useful for inspection, surveying, and industrial automation in oil rigs and refineries. Robotics and automation speeds up operations and reduces the manpower requirement, increasing efficiency and reducing human-induced errors.

3D Modeling & Visualization

3D modeling and high-quality visualizations help create realistic representations of subsurface reservoirs and other O&G equipment. This helps to predict risks that impact the safety of the reservoir. Based on the data, oil & gas engineers optimize the production and operations planning. 3D modeling and visualization lowers costs and reduces risks while increasing performance.

Cloud Computing

Cloud computing is capable of storing and processing data on remote servers, freeing up expensive local memory and computing capacities. Using cloud technology and software applications boosts oil & gas efficiency, security, scalability, and also eases digital transformation.

Augmented & Virtual Reality

Immersive technology includes augmented and virtual reality (AR/VR), mixed reality (MR), and extended reality (XR). In the oil & gas industry, Reality technology-based solutions boost efficiency and reduce errors by showing real-time information about equipment, tools, and parts. For example, exploration and production (E&P) companies use reality solutions for remote monitoring, downhole imaging, and virtual training.

Manufacturing Execution Systems (MES)

MES integrates manufacturing facilities, operational technologies, such as supervisory control and data acquisition (SCADA), and computing systems, to control the production process. MES offers intelligent architecture for manufacturing systems with integrated control for the oil & gas industry. It enables oilfield technologies that ensure faster, safer, and reliable production.

Predictive Maintenance

Predictive maintenance and operations include gathering data from sensors in field installations and integrating them with machine learning algorithms. This enables engineers to quickly assess equipment conditions and implement timely maintenance measures. Predictive operations, coupled with software platforms, further enable granular part visualizations, allowing O&G operators to predict potential failures.

Blockchain

Smart contracts provide security and transparency of oil & gas documents and operations. Distributed ledgers verify contractors, employees, and maintain smart contracts. Blockchain allows oil & gas companies to automate invoices, post-trade settlements, and joint venture accounting. Blockchain is also useful for hydrocarbon fleet tracking, trading, retail B2C, intragroup billing.

Discover all Oil & Gas Trends

The oil & gas industry utilizes these innovations and trends to increase the efficiency of operations and worker safety while reducing costs. The inspection of offshore rigs and onshore equipment is now easier with drones and predictive maintenance. Further, digital twins bridge the gap between physical and virtual spaces, enabling engineers to manage remote assets. Adopting these new technologies helps oil & gas operators and companies address emerging challenges and move forward. Further, the COVID-19 pandemic has pushed industrial companies to rethink the everyday workplace.

The Oil & Gas Trends outlined here, only scratch the surface of trends. Among others, AI, Big Data, and Robotics will transform the sector as we know it today. Identifying new opportunities and emerging technologies early on goes a long way in gaining a competitive advantage.